Developer and distributor of casino table games and systems Galaxy Gaming has followed up a history making quarter by recording double digit growth in both revenue and adjusted EBITDA for 2019’s Q3.
Seeing net income topple the $1m barrier for the first time in the year’s second quarter, revenue during Q3 saw a 12.5 per cent increase year-on-year to reach $5.37m from $4.77m.
Furthermore, the firm, which extended its footprint in the United Kingdom after signing an extension to its current partnership with The Hippodrome Casino London earlier in the year, also saw adjusted EBITDA jump 23.5 per cent to $2.21m (2018: $1.79m.)
“We are pleased to continue delivering double-digit growth in both revenue and Adjusted EBITDA,” said Todd Cravens, Galaxy’s resident and CEO. “The new licenses we have received and are pursuing should give us the opportunity to offer more of our products in underserved markets. However, we do not expect to realise meaningful revenue from the new license opportunities until 2020.”
On a year-to-date basis revenue for the Las Vegas headquartered organisation jumped 17.9 per cent to $16.1m with adjusted EBITDA up 32.9 per cent as it reach $6.67m.
“The third quarter showed our ability to continue to execute,” stated Harry Hagerty, Galaxy’s CFO. “We paid down $370,000 in debt and still added to the cash balance. Most importantly, just after quarter’s end we were able to sign an amendment to our credit agreement with Nevada State Bank that restructured the leverage covenants to allow us to carry the debt incurred in the redemption transaction.
“The new covenants will become effective for the December 31, 2019 quarter. For the third quarter of 2019, we were solidly in compliance with the free cash flow and senior leverage covenants and our non-compliance with the total leverage covenant was waived as a result of the amendment entered into in May 2019.”